Esprit Stones IPO Review

Arising from a legacy of over 40 years in the business of high quality natural stone surfaces, Esprit Stones is a synergy of an idea that brought together two business houses; Aravali and Gattani group to explore new frontiers and set new benchmarks in the engineered stones business.

The Company is led by the Promoters, Sunilkumar Lunawath, Nitin Gattani and Pradeep Lunawath, who have extensive experience in the industry in which they operate and have been intimately involved in their business from inception.

Financially, Esprit Stones revenue decreased from ₹19,002.60 Lakhs in FY22 to ₹17,606.52 Lakhs in FY23 and currently increased at ₹27,477.82 Lakhs in FY24. Similarly, EBITDA also decreased from ₹3,317.86 Lakhs in FY22 to ₹1,898.59 Lakhs in FY23 and currently increased at ₹3,320.08 Lakhs in FY24. The PAT also decreased from ₹1,850.53 Lakhs in FY22 to ₹355.72 Lakhs in FY23 and currently at ₹1,031.73 Lakhs in FY24. This indicates a steady financial performance.

For the Esprit Stones IPO, the company is issuing shares at a pre-issue EPS of ₹6.29 and a post-issue EPS of ₹4.62. The pre-issue P/E ratio is 13.83x, while the post-issue P/E ratio is 18.83x against the industry P/E ratio of 29.20x. The company's ROCE for FY24 is 12.39%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Esprit Stones indicates potential listing gains of 40% to 45%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply in Esprit Stones IPO for listing gain of Long Term Investment Purposes.